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PRODUCT MANAGEMENT BULLETIN: PM–21-007

United States Department of Agriculture


Farm and Foreign Agricultural Services


Risk Management Agency


1400 Independence Avenue, SW
Stop 0801
Washington, DC  20250-0801

Date

February 01, 2021

To:

All Approved Insurance Providers
All Risk Management Agency Field Offices
All Other Interested Parties

From:

Richard H. Flournoy, Deputy Administrator /s/ Richard H. Flournoy    2/1/2021

Subject:

2021 Crop Year (CY) Common Crop Insurance Policy and Area Risk Protection Insurance Projected Prices and Volatility Factors

Common Crop Insurance Policy & Area Risk Protection Insurance 1

The 2021 CY projected prices shown below are approved for the following plans of insurance: Yield Protection, Area Yield Protection, Revenue Protection, Area Revenue Protection, Revenue Protection with Harvest Price Exclusion, and Area Revenue Protection - Harvest Price Exclusion. The 2021 CY volatility factors shown below are approved for the following plans of insurance: Revenue Protection, Area Revenue Protection, Revenue Protection with Harvest Price Exclusion, and Area Revenue Protection - Harvest Price Exclusion. The projected prices and volatility factors apply to policies with a February 15 sales closing date and are applicable for the crops, types, practices, and states indicated below:

Crop/Type/Practice/State Exchange Contract Projected Price Volatility Factor
Corn
Texas		 CBOT December
Corn		 $4.45/bu. 0.22
Corn – Organic Practice
Texas		 CBOT December
Corn		 $9.29/bu. 0.22
Grain Sorghum
Texas		 CBOT December
Corn		 $4.27/bu. 0.22
Grain Sorghum –
Organic Practice
Texas		 CBOT December
Corn		 $8.93/bu. 0.22
Rice – Long Grain Type
 Florida		 CBOT September2
Rice		 $0.124/lb. 0.16
Rice – Long Grain Type;
Organic Practice
Florida		 CBOT September2
Rice		 $0.166/lb. 0.16
Rice – Medium & Short Grain Types
 Florida		 CBOT September2
Rice		 $0.162/lb. 0.16
Rice – Medium & Short Grain Types;
Organic Practice
Florida		 CBOT September2
Rice		 $0.217/lb. 0.16

1 Projected Prices and Volatility Factors are applicable for the Enhanced Coverage Option (ECO) and Supplemental Coverage Option (SCO), where available.
2 In accordance with the Commodity Exchange Price Provisions (CEPP), the CBOT September rice contract is used to derive the projected rice prices since the November contract lacks sufficient volume and open interest activity.

 

DISPOSAL DATE
December 31, 2021

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